Urban Coffee OpportunitiesBringing the <strong>Starbucks</strong> Experience to DiverseCommunitiesIn 1998, <strong>Starbucks</strong> formed a joint venture with JohnsonDevelopment <strong>Corporation</strong> (JDC), which is owned byEarvin “Magic” Johnson. Together we created Urban CoffeeOpportunities, LLC (UCO), bringing <strong>Starbucks</strong> stores todiverse communities. We opened 15 new UCO stores in fiscal2006 and ended the year with a total of 102.We are close to meeting our goal of opening 125 UCO storesin the U.S. and expect to reach the 125 store benchmark bylate 2007 or early 2008.When scouting for new UCO locations, <strong>Starbucks</strong> and JDCconsider the economic vitality and long-term potential ofa given market. In many of the communities where UCOstores have opened, <strong>Starbucks</strong> arrival has helped to serve as aneconomic stimulus with the creation of new jobs, use of localsuppliers, our support for community-based organizations,and by attracting other retailers to the area. The collectiveeconomic impact that our UCO stores generated in fiscal2006 included:• Providing more than 2,100 jobs in 102 UCO stores.• Paying an estimated $29.8 million in salaries/wagesand benefits to UCO partners.• Providing healthcare benefits to eligible and participatingpart- and full-time store partners, their spouses, domesticpartners and eligible dependent children.D I V E R S I T Y75
Independent Assurance ReportTo the Stakeholders <strong>Starbucks</strong> Coffee Company:We have been engaged to provide assurance on the Corporate Social Responsibility (“CSR”) Fiscal 2006 Annual Report (the“Report”) of <strong>Starbucks</strong> Coffee Company (“<strong>Starbucks</strong>”), for the fiscal year ended October 1, 2006.We have performed evidence-gathering procedures on the following subject matter:• Key Performance Indicators Summary and Highlights for Fiscal 2006;• Information and data provided in each area of focus of the Report (Products, Society, Environment, Workplace, andDiversity) and• The management and reporting for the preparation of this information and data.We have considered the subject matter against the following evaluation criteria:• The procedures by which the CSR information and data were prepared, collated and compiled internally and• The control environment over the quality of the information and data.Our statement should be considered in conjunction with the inherent limitations of accuracy and completeness for CSR data,as well as in connection with <strong>Starbucks</strong> internal reporting guidelines.The Board of Directors of <strong>Starbucks</strong> is responsible for both the subject matter and the evaluation criteria.Our responsibility is to report on the internal reporting processes, information and data for CSR based on our evidencegatheringprocedures. Currently there are no statutory requirements or generally accepted verification standards in theUnited States of America that relate to the preparation, presentation, and verification of CSR reports. There are internationalstandards for the CSR reports that were approved by the International Auditing and Assurances Standards Board (IAASB) inJanuary 2005. Using the IAASB approved standards as a guideline, we planned and performed evidence-gathering proceduresto provide a basis for our conclusion. However, we have not performed an audit in accordance with the InternationalStandards on Auditing. Accordingly, we do not express such an opinion.Our evidence-gathering procedures included, among other activities, the following:• Testing the effectiveness of the internal reporting system used to collect and compile information on each area of focus inthe Report;• Performing specific procedures, on a sample basis, to validate the CSR data on site at <strong>Starbucks</strong> coffee buying operations inSwitzerland; C.A.F.E. Practices operations in Costa Rica; and corporate headquarters in Seattle, Washington;• Interviewing partners responsible for data collection and reporting;• Interviewing partners at retail locations;• Assessing the information gathering and compiling process of each area of focus in the Report;• Reviewing relevant documentation, including corporate policies, management and reporting structures and• Performing tests, on a sample basis, of documentation and systems used to collect, analyze and compile reported CSRinformation and data.In our opinion, based on our work described in this report, the CSR information contained in the Report gives a fairrepresentation of CSR performance and activities of <strong>Starbucks</strong> Coffee Company for the fiscal year ended October 1, 2006.Statements, assertions and data disclosed in the Report are reasonably supported by documentation, internal processes andactivities, and information provided by external parties.Moss Adams LLPSeattle, WashingtonJanuary 15, 200776